Accounting and Consulting Sector Overview

The Future of The Sector Is Rooted In Tech

By Sinazo Mkoko

Post-COVID-19 pandemic, a shift in the accounting profession has been observed, with the accountant turning into a financial manager, according to Digital CFO. Digital CFO, a South African accounting firm, says the arrival of new technology tools is expected to influence the nature of demand and expectations for what an accountant is and does. “Business owners are taking control of their accounting with proactive alerts. After the emergence of accounting technologies, we are now at a stage where we no longer do strenuous manual data processing,” they said.

The South African Institute of Professional Accountants (SAIPA), a professional accounting organisation with a mission to serve and protect the public interest, says accountants should embrace technology for all its benefits. “Using it as a tool to move away from data capturing and the stereotypical notions of ‘number crunching’ typically associated with the profession and into the analysis of data in ways that only human professional accountants are capable of,” they said.

“Looking at AI from a more positive perspective in this way reveals a number of advantages for the accountancy professional with a future-focused mindset— that is, one who hopes to remain relevant by keeping their skills, experience, and services in adherence to the ever changing demands of modern businesses,” they said.

Increase in Technology Adoption

The State of Accounting Firms Trends Report 2023 by Caseware shows that technology tools such as data analytics, business intelligence and cloud computing are transforming how accountants communicate and collaborate with clients and corporate leaders.

The report showed that when it comes to technology, accounting firms believe that they are moving with the times.

“The future of accounting will be firmly rooted in technology, and it’s not just the makers of such products that are saying so. As evidenced in our survey results, firms themselves are committed to progress through software and other solutions,” the report stated.

New Opportunities and Growth in South Africa

A new tech-focused accounting firm has been established in South Africa. This comes after RSM International, a leading provider of assurance, tax, and consulting services to middle-market businesses, announced a merger between RSM South Africa and renowned South African professional services firm Ngubane Johannesburg.

The newly merged firm is expected to have approximately 400 staff and a turnover in excess of R300-million, and it’s now called RSM South Africa. The firm said in a statement that the deal would accelerate RSM South Africa’s transformation with a focus on tech-enabled client solutions and deep sector specialisations.

They said Ngubane Johannesburg will, as part of the RSM network, be able to expand its accounting services to clients either already trading internationally or those keen to do so. “The merger will also provide access to RSM’s wide range of services, including risk advisory, legal, cyber security, business transformation, and corporate services,” they said.

RSM International CEO Jean Stephens said the firm has experienced strong growth across Africa over the last two years, and this merger will see two successful businesses with shared ambitions combine, offering scale, innovation, and best-in-class talent development.

“Our ambitious 2030 Global Strategy outlines a major multi-year growth and transformation programme. The merger between RSM South Africa and Ngubane Johannesburg demonstrates RSM’s long-term commitment to delivering The Power of Being Understood to its clients, people, and communities.”

Sharing his sentiments, the new CEO of RSM South Africa, Noma Ashom, said the merger creates a genuine point of difference in the South African marketplace. “It brings together our deep understanding of the South African trading environment with access to international markets and a range of specialist services that RSM is so well known for. It will act as a catalyst for us to move at pace and scale, bringing technology, data, and analytics to our clients in new ways,” he said.

Sources: SAICA | SAIPA | RSM | IRBA | State of Accounting Firms Trends Report 2023 | Digital FCO | Bizcom